Comment by ndriscoll
9 days ago
My point here is that the reason any of this stuff is possible is because the underlying technology makes it extremely cheap. It's not ads that make it so anyone on Asia can have a video chat on a cheap phone; it's that even cheap phones are absurdly powerful and bandwidth is plentiful. Signaling a p2p call is cheap, and phone companies already do it for voice calls. Wasn't WhatsApp the one that had something like 100M-1B MAU charging $1/year on hardware from a decade ago? The actual cost of these things is trivial.
Ads don't make it possible for people to have cheap access to movies. The fact that it costs literally nothing (c.f. bittorrent) to distribute them does. Especially for older recordings that were already paid for generations ago. It actually costs more resources to centralize distribution to serve ads.
Yes it is expensive to run a giant worldwide monopoly on video distribution. But that's not necessary. And some of those problems (e.g. content moderation, discovery) don't exist when self-publishing or curating partners.
People taking ads over paying is exactly why they are anticompetitive. They allow below cost services, destroying competition from companies that just want to fairly offer a service, leading to everything having ads and surveillance, eventually driving up costs of everything.
> because the underlying technology makes it extremely cheap
underlying technology doesn't materialize out of thin air though. Google and Facebook have invested lots of dollars and engineering hours into making Youtube or Whatsapp video a seamless smooth experience for billions of users. That's why the technology seems cheap now. Early on, there were big concerns about Youtube profitability.
> it's that even cheap phones are absurdly powerful
Again, thanks to Android which was funded indirectly by ads.
> c.f. bittorrent
That is plain old theft.
> And some of those problems (e.g. content moderation, discovery) don't exist when self-publishing or curating partners.
Curating partners have economies of scale. That's how you get Youtube. And for self publishing, you can see that most of the "self publishers" on internet are at the mercy of adtech giants (Google and Facebook) for distribution.
> destroying competition from companies that just want to fairly offer a service
That's why I cite Youtube premium. Google offered an ad-free option at a fair price and yet hardly anyone wants to pay for that.
The underlying technology enablers are from companies like Intel, AMD, Qualcomm, TSMC, Micron, all sorts of ISP/cell providers, etc. They're the reason why computers are over 10x faster than they were 10-15 years ago, storage is 1000x faster, networks are 100x faster, etc. The technology is cheap because of actual technology companies. You don't need a centralized service for video calls. You need lots of bandwidth between endpoints and some relatively modest signaling servers (similar to voice calling, which already existed).
Bittorrent does not equate to theft, and the point is it demonstrates that actually distribution costs nothing. The production of most media was paid for generations ago. It can be free or extremely cheap because it's literally free on the provider side. The thing that costs money is monetization.
The fact that self-publishers are at the mercy of ad companies is the point. The ad companies destroy every market they infect. Because they use predatory pricing.
> The underlying technology enablers are from companies like Intel, AMD, Qualcomm, TSMC, Micron, all sorts of ISP/cell providers, etc
And they exist because of demand from the consumers. All those providers have no incentive to invest and upgrade their offerings if there is no demand. Said otherwise, without the likes of YouTube and Whatsapp video chat (and many other ad-funded social media apps), we would be stuck in 2010-era infrastructure.
> You don't need a centralized service for video calls.
Need is a funny word. You need a centralized effort to enhance the user experience of video calls which is very expensive. And very companies have resources to pull that off and offer a great experience for free. Only 3 I can think of - Google, Facebook, Apple (via Facetime). Only Apple is not ad-funded and they keep it to their devices only which is for rich people. Ad-funded products at least made it available to the entire populace.
> The ad companies destroy every market they infect. Because they use predatory pricing.
I gave you a counter-example to your thesis about Youtube Premium which was offered at a reasonable price. Its failure shows that predatory pricing is an excuse - real reason is that people simply prefer to not pay.
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